With a view to provide succour to poor women borrowers who are not able to return the loan amount of Micro Finance Institutions (MFIs), the Finance Department of the Government of Assam signed an MOU with Microfinance Institutions for implementation of Assam Micro Finance Incentive and Relief Scheme (AMFIRS), 2021in the presence of Chief Minister Himanta Biswa Sarma at a programme held at Assam Administrative Staff College in Guwahati on Tuesday.
Finance Minister Ajanta Neog, Agriculture Minister Atul Bora, Education Minister Dr Ranoj Pegu, Housing and Urban Affairs Minister Ashok Singhal, WPT&BC Minister UG Brahma and Chief Secretary Jishnu Barua were also present at the MoU signing ceremony.
Altogether 38 MFIs and Banks signed the MoU with the state government, which will remain in force till March 31, 2023.
Amongst the prominent MFIs and Banks that signed the MoU include Microfinance Institutions Network, North East Small Finance Bank, Association of Small Finance Bank of India, Nightingale Finvest Private Limited, Grameen Development and Finance Pvt. Ltd., North East Micro Finance Association, Bandhan Bank Ltd, Arohan Financial Services Ltd, HDFC Bank Ltd, Fusion Microfinance Pvt Ltd, L&T Financial Services and Asirvad Microfinance Ltd.
Speaking on the occasion, Chief Minister Sarma said that the Assam government in its first cabinet meeting formed a committee under the chairmanship of Housing and Urban Affairs Minister Ashok Singhal to fulfil its election promise of waiving micro-finance loan to provide succour to poor women who are not able to return the loan amount.
“Accordingly, Assam Micro Finance Incentive and Relief Scheme has been devised with an objective to balance long term view of ensuring continuity of micro-finance for supporting economic activities of low income and poor households in the state and providing relief to eligible customers for tiding over current stress in the micro-finance sector due to various operational reasons,” the Assam Chief Minister said.
Stating that upto June, 2021 there were 14 lakh microfinance borrowers in the state, the Chief Minister informed that the new scheme would involve Rs. 12,000 crore credit portfolio, out of which State government would be required to expend around Rs. 7,200 crore.
He further said the scheme emphasizes responsible lending by financial institutions through compliance of RBI regulations and industry guidelines in letter and spirit, while promoting responsible borrowing and timely repayment culture among customers
